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EBay's Earnings Surpass Estimates

E-commerce company eBay Inc. (EBAY) released its first-quarter financial results after the market closed on April 23. The company's earnings and revenue edged past expectations.

By the numbers

In the first quarter, the marketplace platform reported net income of $521 million, or 57 cents per share, up from $407 million, or 40 cents per share, in the prior-year quarter. Revenue grew 2% to $2.64 billion.

"We delivered a solid first quarter with revenue and EPS," CEO Devin Wenig said. "Our initiatives to create a next generation payment and advertising experience are on track, we saw healthy buyer growth and disciplined cost control, and we continue to simplify the buying process while remaining focused on seller's success."

At the end of the quarter, the company had $4.4 billion in cash and short-term investments. Long-term debt was $7.7 billion. The online auction company made $550 million in cash from operating activities. Capital expenditures for the quarter amounted to $182 million.

Financial forecast

Having reported robust first-quarter results, the company raised its 2019 guidance for revenue and earnings per share. The company projects full-year revenue to be in the range of $10.83 billion to $10.93 billion. On a GAAP basis, earnings per share from continuing operations are anticipated to be between $1.94 and $2.04.

Last word

The company is using artificial intelligence and structured data to its advantage by enhancing platform users' experience. This has contributed to the active buys on its platform, helping drive gross merchandise value.

In addition, eBay implemented several improvements, including simplifying the registration process and expanding search functions.

All these factors helped the company post strong first-quarter results.